Northern Silica Project Development Advances

Emerging silica sands developer and explorer Diatreme Resources Ltd (“Diatreme”, ASX:DRX) continues to progress the development of its Northern Silica Project (NSP) in North Queensland, with regulatory approvals and exploration advancing amid continuing strong demand for high purity silica from the solar PV industry.

Regulatory /Approvals

• EIS specialist consultants on-site undertaking environmental and social impact assessments and background studies for Diatreme’s Northern Silica Project (NSP).
• Application lodged with the Queensland Office of the Coordinator General for the North Queensland project to be designated a ‘Coordinated Project’.

Exploration

• NSP and Casuarina Silica exploration targets updated using LIDAR imagery to increase accuracy and target definition.
• Exploration drilling underway, with simultaneous drilling programs utilising sonic and aircore drilling to complete infill and extension drilling as well as environmental water bore drilling.
• Bulk sample collection underway across the NSP Si2 resource area for metallurgical test work.
• Point Lookout Track (PLT) and Western Dune Ridges (WDR) exploration infill and step out augering confirms continuity of high purity silica sand dunes to the north and west of established resources.

Positive results from last year’s hand auguring program at the PLT and WDR exploration targets has expanded on the first pass drilling and auguring program in the area, demonstrating further continuity of high purity silica sand mineralisation in areas contiguous to the Si2 Resource Area. Resource exploration is focused on extensions located within and around the NSP for potential resource expansion.

The next steps for the PLT and WDR exploration targets are to complete a maiden mineral resource estimate in accordance with the JORC code from the exploration data available to date. Diatreme has commissioned this work via an external resource modelling group, targeting completion in November 2023.

Diatreme’s CEO, Neil McIntyre commented: “The Northern Silica Project is one of the world’s purest silica sand projects of scale, and it’s pleasing to see further resource consistency across the dune systems extending from our underpinning Si2 resource.

“We are further encouraged to see additional regional upside adjacent to our proposed mining development, with our resource essentially open on all sides, offering potential for further expansion of an already world class resource.”

COORDINATED PROJECT APPLICATION

Diatreme has lodged an application with the Queensland Office of the Coordinator General (OCG) for the NSP to be designated as a ‘Coordinated Project’. Such designation would enable the project’s approvals stream to be coordinated by the Office of the Coordinator General and assessed under the State Development and Public Works Organisation Act 1971 (SD Act).

This follows the NSP being deemed a ‘Project of Regional Significance’ by the Queensland Government’s Department of Regional Development, Manufacturing and Water pursuant to the Cape York Water Resources Plan (2019) (refer ASX release 3 August 2023). The designation confirmed the NSP’s important economic and social impact for the region, allowing Diatreme to apply for a future water entitlement.

In June, the Queensland Government launched the “Queensland Critical Minerals Strategy” which included the potential development of a critical minerals hub for silica sand around Cape Flattery.

Diatreme is now actively engaged with the Office of the Coordinator General (OCG) and has been participating in meetings to assist in the development of a “Cape Flattery Critical Minerals Zone” with OCG and other regional proponents in the area as this strategy continues to advance. Such an initiative has the potential to fast-track development of a mineral vital to the solar power industry, unlocking increased economic and social value for the people of Queensland and local stakeholders including First Nations communities.

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